On March 7, 2025, Social Security issued a press release stating that it will increase its default overpayment withholding rate for Social Security benefits to 100 percent of a person’s monthly benefits.
In March of 2024, Social Security had announced a new policy wherein it would withhold only 10% of a beneficiary’s total monthly benefit or $10 whichever was greater in order to recoup any type of overpayment. However, beginning March 27, 2025, that policy has been rescinded.
Effective March 27, 2025, Social Security will begin mailing notices of the new 100 percent withholding rate. This withhold rate change will apply to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27th will not change. The withholding rate for Supplemental Security Income overpayments will remain at 10 percent of the beneficiary’s monthly benefit. Beneficiaries who are overpaid after March 27, 2025 will automatically be placed in full recovery at a rate of 100 percent of their Social Security payments.
However, Social Security has said that if someone cannot afford full recovery rate, they can contact Social Security at 1-800-772-1213 or their local Social Security to request a lower rate of recovery. Additionally, an overpayment decision can be appealed if a person believes the overpayment was not their fault or cannot afford to pay it back.
For more information on Social Security disability benefits, contact an experienced Social Security disability attorney at Gardberg & Kemmerly, P.C. today at 251-343-1111 for a free case evaluation. Gardberg & Kemmerly, P.C. represents Social Security disability claimants in Alabama, Mississippi, Florida, and Louisiana at all levels of the disability process from initial application to appeals to Federal Court.